Annual Redemption (Retraction) Feature for Securities of Split Share Corporations: The ability to sell capital shares or preferred shares of a split share corporation back to the company on an annual basis. The calculation of the proceeds to be paid to the capital holder or the preferred share holder is defined in the corporation’s initial public offering prospectus. Annual redemptions usually require a pre-determined notification period. Typically there are no direct costs to the holder to utilize an annual retraction feature, although the fund manager may allocate some costs to the redeeming holder.